Property Valuation
An appraiser is estimating a property's value using a gross rent multiplier (GRM) of 140. The monthly rent is $1,800. What is the estimated value?
A$252,000✓ Correct
B$270,000
C$288,000
D$2,520,000
Explanation
GRM is calculated as: Value = Monthly Rent × GRM. $1,800 × 140 = $252,000. The GRM is a simple, quick method to estimate value based on the relationship between a property's price and its gross rent.
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